Texas Municipal Retirement System

Description

TMRS Investment Policy - Effective September 2010 (pdf) Performance Report as of August 31, 2010 (pdf) Performance Report as of July 31, 2010 (pdf) Quarterly Summary as of June 30, 2010 - 2Q 2010 (pdf) Performance Report as of May 31, 2010 (pdf) Quarterly Summary as of March 31, 2010 - 1Q 2010 (pdf) Performance Report as of February 28, 2010 (pdf) Performance Report as of January 31, 2010 (pdf) Performance Report as of December 31, 2009 (pdf) More >> TMRS investments are held in trust for the exclusive benefit of members and invested under the provisions of the TMRS Act. The investment statutory guidelines for TMRS are found in the Texas Government Code, Sections 855.301 through 855.303. PRINCIPLES AND OBJECTIVES TMRS investments are managed to ensure that members, retirees, and beneficiaries are provided with the benefits they have been promised by their employers at a reasonable and predictable cost to the employers. Assets will be invested for total return with appropriate consideration for portfolio volatility (risk) and liquidity. Emphasis should be on both capital appreciation as well as the production of income in order to satisfy the short-term and long-term funding needs of TMRS. Total return includes dividends, interest, and realized and unrealized capital appreciation. Investments are made with the degree of judgment and care, under the circumstances that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, considering the probable income from the securities and probable safety of their capital and in consideration of the purposes, terms, distribution requirements and other circumstances of the TMRS fund. Investment and management decisions respecting individual assets will be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund. INVESTMENTS IN TRANSITION As of December 31, 2008, the TMRS retirement fund was valued at $14.6 billion, invested predominantly in fixed income securities with a 12% allocation to equities. The initial move into equities, half in U.S. stocks and half in foreign stocks, was invested passively in index funds, a lower-cost approach. That allocation to equities, adopted by the Board of Trustees in November 2007, was a first step toward diversification of the portfolio, pending legislation that was subsequently adopted in 2009. The passage of HB 360 enables TMRS investments to be managed toward a total return objective. How Is TMRS Diversifying Its Investments? As of December 31, 2009, TMRS investments were allocated 23% to equities (11.6% domestic and 11.4% international) and 76.7% to fixed income. As of March 31, 2010, the TMRS asset mix was 26.6% to equities (13.6% domestic and 13.0% international) and 73.4% to fixed income. In June 2009, the Board adopted an Investment Policy that reflects the change from an income to a total return objective and approved a strategic asset allocation policy that fully diversifies the investment portfolio. The long-term asset allocation target is

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